Reform UK’s tax plans disproportionately benefit high earners, analysis shows

Published

1 year ago

June 22, 2024

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Reform UK bills itself as the party “for the left behind” but its flagship tax policy disproportionately benefits those on higher incomes, analysis for Sky News shows.

Nigel Farage hailed the plan to raise the threshold at which workers start paying tax to from £12,571 to £20,000, saying it would lift millions of low-paid workers out of paying tax altogether.

However, Reform’s plan to raise the higher rate threshold from £50,271 to £70,000 would amount to a tax cut worth almost £6,000 for the top 10% of earners, vastly overshadowing the benefit to the lowest earners.

The top 10% of households, by disposable income, have £3,000 a month to spend after housing costs, council tax and direct taxes. A couple in this category would have £5,290 to spend.

These people would gain almost £5,983 in disposable income each year as a result of the changes.

The bottom 10% of households have less than £693 to spend on things such as heating and food each month. The figure rises to £1,195 for a couple. These households would gain an extra £221 per year.

Despite the vast discrepancy, Reform UK has repeatedly framed this as a policy for the lowest paid.

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At the party’s manifesto launch in South Wales, Mr Farage said: “I think the most innovative policy that we’ve put out in here is to raise the level at which people start paying tax to £20,000 a year.

“Why? Well, number one, it would take seven million people out of the tax system altogether, a devilishly complicated tax system. That would be a good thing, of course, for those on low pay.”

When challenged, Mr Farage maintained that people on lower incomes would benefit more than those on higher incomes when the tax cuts were viewed as a proportion of their total salary. However, that is not the case.

The changes would represent a 2.3% increase in disposable income for those in the bottom 10% and a 6.4% increase for those in the second highest group of earners.

It would cost the public purse about £59bn. The top 10% of households would receive 28p for every £1 spent, while the bottom 10% would receive just 2p.

Dr Jamie O’Hallaran, senior research fellow at IPPR, the left-wing thinktank that conducted the research, said: “These tax cuts would be both very costly and disproportionately benefit those on the highest incomes.

“At a time when public services and household finances are under such pressure, this would be highly irresponsible. Polls also show this is not what the public want.

“Voters are crying out for public services that work, not tax cuts for the top 10%.”

Politics

Starmer refuses to rule out manifesto-breaking tax rises in budget

Published

5 hours ago

November 21, 2025

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Starmer refuses to rule out manifesto-breaking tax rises in budget

The prime minister has refused to rule out manifesto-breaking tax hikes in next week’s budget while speaking to Sky News political editor Beth Rigby.

Sir Keir Starmer was interviewed by Rigby while the pair were in South Africa for a meeting of the G20 group of nations.

Despite the government last year indicating it was not going to raise more taxes, it appears that Wednesday’s fiscal event will involve substantial increases in levies.

The 2024 Labour manifesto said: “We will ensure taxes on working people are kept as low as possible.

“Labour will not increase taxes on working people, which is why we will not increase national insurance, the basic, higher, or additional rates of income tax, or VAT.”

At the start of their interview, the prime minister was asked by Rigby if it was important for politicians to “stick to their word”.

Sir Keir said: “Yes, it is important that politicians stick to their word.

“They have to make decisions against a political backdrop. And, we’ve also got big decisions to make in the budget that’s coming in just a few days time.”

This caveat matches the expectations that a range of taxes are going to be increased so the government can keep its spending pledges and increase its fiscal headroom amid worsening economic headwinds.

There was chaos last week after the increase in income tax that many had expected to be on the way was revealed to no longer be on the cards.

Asked specifically on the manifesto commitment on tax, Sir Keir told Rigby that decisions will be made “against a very difficult backdrop”.

In total, the prime minister refused 12 times to rule out tax rises.

He added it was “important to take the right decisions for our country”.

Rigby pointed out in the lead-up to the 2024 Budget, the prime minister was more unequivocal, saying income tax, national insurance and VAT would not all go up.

The prime minister declined to make the same promise, saying the decisions on tax will be announced on Wednesday.

However, Sir Keir said the budget will be guided by “principles”, including “fairness”.

The prime minister said the three areas he is “bearing down on” are the NHS, cutting national debt and dealing with the cost of living crisis.

One tax rise that has not been ruled out is what is known as a “stealth tax rise” of freezing income tax thresholds.

Rigby highlighted that in last year’s budget, Rachel Reeves said freezing thresholds will “hurt working people” – and asked the prime minister if he agreed.

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Sir Keir said: “We are going to set out our decisions.

“We will have absolutely in mind that the cost of living is the number one issue for people across the country.”

Pushed again, if working people will have their taxes increased, the prime minister instead mentioned he has people who are “struggling with the cost of living” in mind when making decisions.

Politics

Ex-Coinbase lawyer announces run for New York Attorney General, citing crypto policy

Published

5 hours ago

November 21, 2025

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Ex-Coinbase lawyer announces run for New York Attorney General, citing crypto policy

Khurram Dara, a former policy lawyer at cryptocurrency exchange Coinbase, officially launched his campaign for New York State Attorney General.

In a Friday notice, Dara cited his “regulatory and policy experience, particularly in the crypto and fintech space” among his reasons to try to unseat Attorney General Letitia James in 2026.

The former Coinbase lawyer had been hinting since August at potential plans to run for office, claiming that James had engaged in “lawfare” against the crypto industry in New York.

Law, Politics, New York, Elections — *Source:* *Khurram Dara*

Until July, Dara was the regulatory and policy principal at Bain Capital Crypto, the digital asset arm of the investment company. According to his LinkedIn profile, he worked as Coinbase’s policy counsel from June 2022 to January 2023 and was previously employed at the crypto companies Fluidity and Airswap.

James, who took office in 2019, has faced criticism from many in the crypto industry for filing lawsuits against companies on behalf of affected New Yorkers, including Genesis, KuCoin and NovaTech. Whoever assumes the role of New York’s attorney general would have significant discretion over whether to file charges against crypto companies.

Dara, who said he plans to run as a Republican, also echoed Mayor-elect Zohran Mamdani’s recent winning campaign, citing New Yorkers’ concerns about the cost of living and affordability. Cointelegraph reached out to Dara for comment, but had not received a response at the time of publication.

The lawyer who represented XRP holders is also running for office again

As the deadline approached for candidates for various offices to announce their runs, former Massachusetts senatorial candidate John Deaton said he would try to unseat a Democrat again.

Deaton ran against Senator Elizabeth Warren in 2024, losing by about 700,000 votes. On Nov. 10, however, he announced he would run as a Republican again, attempting to unseat Senator Ed Markey in 2026.